Question

Astro Corporation, a furniture manufacture, uses anactivity-based costing system. It has identified the followingselected activities:

Setting up machines for a particular batch of production.

Inspecting wood prior to using it in production.

Packaging completed furniture in boxes for shipment.

Inspecting completed furniture for quality control.

Purchasing TV time to advertise a particular product.

Incurring property taxes on factory buildings.

Incurring paint cost for furniture produced.

Classify each activity as a unit-level, batch-level, productlevel, or facility –level activity.

Identify an appropriate cost driver (allocation base) for eachof the activities